Update shared on04 Sep 2025
Analysts remain bullish on General Electric due to raised EBIT guidance, strong momentum in GE Aerospace’s commercial engines and aftermarket business, and attractive valuation, resulting in an unchanged consensus price target of $297.93.
Analyst Commentary
- Bullish analysts highlight raised EBIT guidance for 2025 and 2028, indicating improved profit expectations and sustained upward momentum following Q2 results.
- Increased price targets reflect greater confidence in GE Aerospace’s commercial engine and services growth outlook.
- Analysts see GE Aerospace as positioned to outperform thanks to its conservative forecasts, setting it up to exceed future expectations.
- Continued strength and momentum in the engine aftermarket business is viewed as a significant earnings tailwind.
- Current valuation coupled with management’s positive commentary bolsters the investment narrative, making shares appear attractive.
What's in the News
- Over 600 GE Aerospace employees at Evendale, Ohio and Erlanger, Kentucky went on strike after the United Auto Workers union and the company failed to reach a new contract agreement, potentially impacting engine production for the U.S. Navy (Reuters, 2025-08-28).
- India is in the final stages of negotiating a $1B deal with GE to purchase 113 new F404-IN20 fighter jet engines for its indigenous Light Combat Aircraft, with the contract likely to be signed by next month (Economic Times, 2025-08-26).
- China has begun restricting the supply of critical minerals to Western defense manufacturers, including GE Aerospace, causing industry-wide production delays and heightened global competition for mineral resources (WSJ, 2025-08-04).
- President Trump’s $892.6B defense budget request emphasizes increased spending on troop pay, missiles, and drones, with flat overall funding and fewer ship and fighter jet purchases, potentially impacting defense contractors like GE Aerospace (Reuters, 2025-06-26).
- GE Aerospace stated its alignment with NTSB’s urgent safety recommendations following concerns related to smoke entering cockpits or cabins of airplanes fitted with certain CFM International LEAP engines (Bloomberg, 2025-06-18).
Valuation Changes
Summary of Valuation Changes for General Electric
- The Consensus Analyst Price Target remained effectively unchanged, at $297.93.
- The Discount Rate for General Electric remained effectively unchanged, at 7.72%.
- The Consensus Revenue Growth forecasts for General Electric remained effectively unchanged, at 6.9% per annum.
Disclaimer
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